Oswald No-Till Farm Cleghorn, IA | Forgive me if my grammar isn't correct (who, whom?).
In dealing with companies, you have to ask yourself not how it will benefit you but how will it benefit them (Cargill in this case). Grain companies make money by processing/handling crop on margin. The more throughput, the more margin returns. Deltas (changes) in their margin can be heavily influenced by basis change. Captive supply reduces basis risk. If you can secure enough bushels on captive supply, your processing risk goes down.
One could even speculate that Cargill might get a form of kickback from bin companies in the program so the cost of "helping" on the bin may be much less than one would think.
In the long run, it is likely their merchandisers, accountants, and attorneys have it better figured out than I or you would. It likely benefits them more than it would you. You just don't know it yet.... they probably do.
Tom |
cargill and new grain bins?
